EU CREDIT UPDATE: EU Credit Midday
Feb-26 12:18
- 2y/10y bunds are flat/-2bp at 2.06%/2.44%.
- €IG is -0.3bp on average. WLNFP (+5-8) and STLA (+1-4) are wider while SESGFP (-2-6) is tighter post results.
- SX5E/SPX futures are +1.2%/+0.4% at 5517pts/5996pts. €IG movers include Wienerberger AG (+12%), Adecco Group AG (+11%), Worley Ltd (+10%), Fresenius SE & Co KGaA (+8%), Worldline SA/France (-17%), Wolters Kluwer NV (-9%).
- Primary has deals from CAT (£), MEOGR, NBHA (£), PPG, SGELN (£), ARBEJD, BNS, BFCM, ISPVIT (T2), NWG (£AT1).
- Main/XO are -1bp/-5bp at 52.1bp/284bp.
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EQUITIES: 32% of The S&P 500 Set to Report This Week
Jan-27 12:13
Executive Summary:
- 31.6% of the S&P 500's market cap set to report earnings this week
- Highlights this week include Microsoft, Meta Platforms, Tesla Apple and Visa
- Tech names in particular focus given their exposure to AI spending, and Monday's equity price weakness
Full schedule including EPS, revenue expectations and timings here: MNIUSEARNINGS270125.pdf
SONIA: Large Call Fly seller
Jan-27 12:03
0NM5 96.10/96.30/96.50c fly, sold at 2 in 16k.
EGBS: 10-year RAGBs Underperform Semi-core Peers Following Syndication Mandate
Jan-27 11:59
The 10-year RAGB/Bund spread has widened ~2bps since this morning’s dual-tranche syndication mandate, now at 37bps. This leaves 10-year RAGBs underperforming semi-core peers (Netherlands, Ireland, Belgium, Portugal and France) intraday.
- The timing of Austria’s first syndication had been uncertain due to questions surrounding the budget outlook. MNI had looked for a transaction this week or in the first half of February – with a lean towards the latter.
- A new 10-year Feb-25 RAGB maturing 20 February 2035 will be launched alongside a tap of the 1.85% May-49 Green RAGB – in line with MNI’s expectations.
- A reminder that the EU decided not to proceed with an Excessive Debt Procedure on Austria earlier this month, after negotiators attempting to form a right-wing coalition presented a E6.4bln savings plan.
- On Jan 10, Fitch revised Austria’s outlook to Negative from Stable (rating affirmed at AA+).
- As of Q3 ‘24, the 4Q rolling sum of the budget balance was -3.7% of GDP (vs -3.3% in Q2). Both Bloomberg analysts and the EC expect the 2024 budget balance to print at -3.6% of GDP, down from -2.6% in 2023.
